LG Electronics has reported third-quarter revenues of KRW 14.92 trillion (approximately USD 14.54 billion), which represents an increase of 7.4 percent year-on-year. Third-quarter operating profit reached KRW 461.3 billion, more than double the figure from the same period a year ago. Net profit jumped to KRW 203 billion from KRW 109 billion a year ago. Earnings reflected a strong performance from LG's mobile business which saw record smartphone sales in the third quarter with sales of 16.8 million units, the company said.
The LG Mobile Communications Company shipped a record-breaking 16.8 million smartphones in the third quarter, which represents a growth of 39 percent year-on-year and 16 percent more units than the previous quarter. Growth was led by the launch of the GS, which helped more than double LTE unit sales year-on-year and grow North America sales 39 percent sequentially. The offset a slowdown in its home market Korea.
The mobile division recorded sales of KRW 4.25 trillion, up 39 percent year-on-year, and operating income rose to a profit of KRW 167.4 billion from a loss of 79.4 billion a year ago. The results were the highest since the third quarter of 2009. LG said it expects intense competition to continue in the high end of the smartphone market, while the mass market suffers from price pressure. It will continue its strategy of a flagship model like the G3 at the high end and derivations of this and the L series for the mid range.
The LG Home Entertainment Company saw third-quarter revenues of KRW 4.71 trillion, down 3 percent from the same period last year. Operating profit amounted to KRW 130.5 billion, up 5 percent from the same quarter last year due to better product mix. Sales of LCD TVs increased year-on-year in regions such as North America, Europe, Asia and the Middle East. LG expects sales of 4K Ultra HD TVs and commercial digital signage products to grow, while market demand for monitors and AV products is expected to slow.
